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Anna Hazir Ho!
By Fakhri Sabuwala
One of the biggest public movements in this part of the world is on. Thousands of students, businessmen, house makers, professionals, public figures across the country are supporting it. Over 200 people have been sitting at Jantar Mantar and observing a fast. Thousands of people in different parts of India are observing either an indefinite fast or a relay fast. What is this crusade for? An issue which the average ‘aam aadmi’ is tired of and has reached a frustration level. It’s ‘Corruption’…… the avaricious, gluttony for money of the politicians, bureaucrats and power brokers. The spontaneous response of thousands for this cause shows how desperate people are to save the nation and their future from the clutches of greedy lot.
Sharad Pawar, the smartest politician, could read the writing on the wall and quit (Group of Ministers) GOM on the anti-corruption bill. Possibly, this was to prevent more beans from spilling and invite less trouble in coming days. The other ministers in this group are making all efforts to clear their name and resolve this issue amicably. For Anna Hazare it is ‘now or never’ and ‘do or die’ this time. He could be one person who could destabilise the present government and give the prospective party candidates a run for their money in the next election. This movement if it catches wild fire can change the contours of our politics and save the country from a social and political disintegration.
The market is closely observing this development. The FIIs liquid push gave the impetus to the benchmarks during the last 20 days resulting in a neat 15% rise. But such political developments, of late, has made the FIIs do a rethink on the deeper plunge. The BSE Sensex and CNX Nifty are falling since the last 3-4 sessions although the speed of the fall is yet not visible. May be the market is hoping for a positive fallout of this crusade. Thank God if that happens. What is a matter of worry is the continuation of non-governance and shift of focus from development and growth to operation clean-up.
Both the Sensex and the Nifty have seen this swift rise, sans volumes. This lack of volume and participation of domestic institutions (DIIs) and retail make it vulnerable to a crack. Top industry leaders have been straight and categorical about the worsening investment climate in the country. The FDI is slowing down. As a result of changing policies reforms are in peril and FDI inflows have dipped by 25% in the period April 2010 to February 2011, compared to the same period in 2009-10. Ashok Ganguly, a Rajya Sabha and Council of Trade and industry member, says “we unanimously reiterate the urgent need to press forward with reforms and improve the investment climate in the country”, Rahul Bajaj vocal as he is warned the ministers that if the reform process stays derailed, the country would slip into the pre-1991 crisis. This would hurt entrepreneurship and fuel corruption further. Deepak Parekh of HDFC, M.S. Banga of HUL and Anu Aga of Thermax ware categorical in their anxieties in the investment climate faced by foreigners.
The fundamentals of record indirect tax collection for fiscal 2010-11 may be a landmark of the past. The current mood of the consumers is of indifference. Inflation in general and bad mood are the reasons for the lackluster car sales this Gudi Padwa. Despite festival discounts ranging from Rs.10,000 on Santro, Rs.25,000 on the Alto and Retz and Rs.35,000 on Zen and A-Star, the market is not as buoyant as it was last year. Possibly cities are slow in pick-ups but the demands from tier 2 and tier 3 towns may not be that bad. The rising prices of cars in April 2011 and beyond could be another dampener.
Larsen & Toubro, and BHEL have looked up in the last few sessions indicating that all is well with infrastructure sector. L&T’s projects are meeting time deadlines and steady order flow will take the stock once again to near the Rs.2,000 mark. BHEL’s strong order book and robust net profit estimates has passed the Rs.2,200 mark on its way to Rs.2650. The scrip will cross its interim high and touch Rs.3,000 as the fears of Chinese competition are dying down. Future Capital is another stock to watch out as it plans opening of 100 Financial Superstores by March 2012 and targeting loan distribution of Rs.1,000 crore. It aims at providing financial solutions for all retail financial products and focus on gold loans too. Srei Infra one of the country’s few pure-play private sector infrastructure finance company is entering new markets like UAE, Africa and South East Asia. Alok Industries is rising on news of the company selling two commercial properties in proper Mumbai and 450 acres at Silvassa. The scrip has the potential to cross Rs.32 and bask in its old glory. United Phosphorus acquires 50% stake in Spicam Isagro Brasil, which gives this domestic agro chemical manufacturer a foothold in very large Brazilian market. Voltas around Rs.185 could be a safe long-term bet as it is consolidating its market in the Gulf by enhancing its stake in its Oman based subsidiary. Crompton Greaves around Rs.288 is a safe pick from the segment. The Thapar Group is on the rising curve just the way the Mahindra & Mahindra Group was two years back. The Thapar
companies that are worthy of a relook are Crompton with price target of Rs.400+ and BILT with price target of Rs.60 in a year from now.
SIP was always the safest and most prudent way of equity investment. Realising this, most brokers, too, have started SIP packages for their clients enabling them to buy select stock on a pre-determined date by ECS transfer from the bank accounts. Another great development which is noticeable is the joining of the SIP bandwagon by HNI’s. Of late, mutual fund houses are receiving over 1,00,000 monthly SIP applications at their select scheme counters. So what’s good for a retailer is also good and in fact better for HNI’s.
That’s it for now till the anti-corruption crusade unfolds the leadership of Anna Hazare.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Anna Hazir Ho!
By Fakhri Sabuwala
One of the biggest public movements in this part of the world is on. Thousands of students, businessmen, house makers, professionals, public figures across the country are supporting it. Over 200 people have been sitting at Jantar Mantar and observing a fast. Thousands of people in different parts of India are observing either an indefinite fast or a relay fast. What is this crusade for? An issue which the average ‘aam aadmi’ is tired of and has reached a frustration level. It’s ‘Corruption’…… the avaricious, gluttony for money of the politicians, bureaucrats and power brokers. The spontaneous response of thousands for this cause shows how desperate people are to save the nation and their future from the clutches of greedy lot.
Sharad Pawar, the smartest politician, could read the writing on the wall and quit (Group of Ministers) GOM on the anti-corruption bill. Possibly, this was to prevent more beans from spilling and invite less trouble in coming days. The other ministers in this group are making all efforts to clear their name and resolve this issue amicably. For Anna Hazare it is ‘now or never’ and ‘do or die’ this time. He could be one person who could destabilise the present government and give the prospective party candidates a run for their money in the next election. This movement if it catches wild fire can change the contours of our politics and save the country from a social and political disintegration.
The market is closely observing this development. The FIIs liquid push gave the impetus to the benchmarks during the last 20 days resulting in a neat 15% rise. But such political developments, of late, has made the FIIs do a rethink on the deeper plunge. The BSE Sensex and CNX Nifty are falling since the last 3-4 sessions although the speed of the fall is yet not visible. May be the market is hoping for a positive fallout of this crusade. Thank God if that happens. What is a matter of worry is the continuation of non-governance and shift of focus from development and growth to operation clean-up.
Both the Sensex and the Nifty have seen this swift rise, sans volumes. This lack of volume and participation of domestic institutions (DIIs) and retail make it vulnerable to a crack. Top industry leaders have been straight and categorical about the worsening investment climate in the country. The FDI is slowing down. As a result of changing policies reforms are in peril and FDI inflows have dipped by 25% in the period April 2010 to February 2011, compared to the same period in 2009-10. Ashok Ganguly, a Rajya Sabha and Council of Trade and industry member, says “we unanimously reiterate the urgent need to press forward with reforms and improve the investment climate in the country”, Rahul Bajaj vocal as he is warned the ministers that if the reform process stays derailed, the country would slip into the pre-1991 crisis. This would hurt entrepreneurship and fuel corruption further. Deepak Parekh of HDFC, M.S. Banga of HUL and Anu Aga of Thermax ware categorical in their anxieties in the investment climate faced by foreigners.
The fundamentals of record indirect tax collection for fiscal 2010-11 may be a landmark of the past. The current mood of the consumers is of indifference. Inflation in general and bad mood are the reasons for the lackluster car sales this Gudi Padwa. Despite festival discounts ranging from Rs.10,000 on Santro, Rs.25,000 on the Alto and Retz and Rs.35,000 on Zen and A-Star, the market is not as buoyant as it was last year. Possibly cities are slow in pick-ups but the demands from tier 2 and tier 3 towns may not be that bad. The rising prices of cars in April 2011 and beyond could be another dampener.
Larsen & Toubro, and BHEL have looked up in the last few sessions indicating that all is well with infrastructure sector. L&T’s projects are meeting time deadlines and steady order flow will take the stock once again to near the Rs.2,000 mark. BHEL’s strong order book and robust net profit estimates has passed the Rs.2,200 mark on its way to Rs.2650. The scrip will cross its interim high and touch Rs.3,000 as the fears of Chinese competition are dying down. Future Capital is another stock to watch out as it plans opening of 100 Financial Superstores by March 2012 and targeting loan distribution of Rs.1,000 crore. It aims at providing financial solutions for all retail financial products and focus on gold loans too. Srei Infra one of the country’s few pure-play private sector infrastructure finance company is entering new markets like UAE, Africa and South East Asia. Alok Industries is rising on news of the company selling two commercial properties in proper Mumbai and 450 acres at Silvassa. The scrip has the potential to cross Rs.32 and bask in its old glory. United Phosphorus acquires 50% stake in Spicam Isagro Brasil, which gives this domestic agro chemical manufacturer a foothold in very large Brazilian market. Voltas around Rs.185 could be a safe long-term bet as it is consolidating its market in the Gulf by enhancing its stake in its Oman based subsidiary. Crompton Greaves around Rs.288 is a safe pick from the segment. The Thapar Group is on the rising curve just the way the Mahindra & Mahindra Group was two years back. The Thapar
companies that are worthy of a relook are Crompton with price target of Rs.400+ and BILT with price target of Rs.60 in a year from now.
SIP was always the safest and most prudent way of equity investment. Realising this, most brokers, too, have started SIP packages for their clients enabling them to buy select stock on a pre-determined date by ECS transfer from the bank accounts. Another great development which is noticeable is the joining of the SIP bandwagon by HNI’s. Of late, mutual fund houses are receiving over 1,00,000 monthly SIP applications at their select scheme counters. So what’s good for a retailer is also good and in fact better for HNI’s.
That’s it for now till the anti-corruption crusade unfolds the leadership of Anna Hazare.
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